2. OPENING QUOTE
• “If you fulfill the wishes of your employees, the
employees will fulfill your visions.”
― Amit Kalantri
• “You can’t teach employees to smile. They
have to smile before you hire them.”– Arte
Nathan, Wynn Las Vegas
• “Recently, I was asked if I was going to fire an
employee who made a mistake that cost the
company $600,000. No, I replied, I just spent
$600,000 training him. Why would I want
somebody to hire his experience?”– Thomas
John Watson Sr., IBM
3. WHAT DO YOU THINK IS HUMAN
RESOURCE MANAGEMENT?
WHAT IS THE DIFFERENCE
BETWEEN HRM AND PERSONNEL
MANAGEMENT?
• HOW IMPORTANT DO YOU THINK IT
IS TO THE ORGANIZATION?
4. Aims
By the end of the session students will be
able to:
1) Demonstrate an understanding role of
HR.
2) Understand the factors influencing the
HRM.
3) Differentiate between HRM and
Personnel Management
8. Personnel Management V Resource
Management
• Personnel Management is ‘workforce’ centred
• HR is resource centred
• Does not identify with Management interests
• Directed at management needs for deployment
• People have the right to proper ‘treatment’
• Focus is on individuals and needs and potential
• Intervene between manager - subordinate relationships
• Planning, monitoring and control rather than mediation
9. Introduction to HR
• The 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’
– fashionable term
– re-organisation of work of personnel department
– distinctively different with new management approach
• Long term rather than short term perspective
• Psychological contract of commitment
• Self-control rather than external controls
• Management integration
• Maximum utilisation of resource
10. Human Resource Management
• “HRM is the function performed in
organizations that facilitates the most
effective use of people to achieve
organizational and individual goals.”
– Ivancevich and Glueck
11. Why is it Important?
• Staff are the largest revenue cost of any organisation.
• Staff are a volatile resource, they can leave you any time.
• Staff are a store of corporate knowledge and the means of
service delivery.
• Retaining and developing good staff allows you to use skills
and develop as a business.
• Individuals should contribute more than they cost.
• In the industry customer care critical and delivered by staff
as representatives.
12. Introduction to HR
• The 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’
– fashionable term
– re-organisation of work of personnel department
– distinctively different with new management approach
• Long term rather than short term perspective
• Psychological contract of commitment
• Self-control rather than external controls
• Management integration
• Maximum utilisation of resource
13. Hard and Soft HRM
• 'Storey (1989) has distinguished between hard and soft
forms of HRM, typified by the Michigan and Harvard models
respectively. 'Hard' HRM focuses on the resource side of
human resources. It emphasizes costs in the form of
'headcounts' and places control firmly in the hands of
management. Their role is to manage numbers effectively,
keeping the workforce closely matched with requirements in
terms of both bodies and behaviour. 'Soft' HRM, on the other
hand, stresses the 'human' aspects of HRM. Its concerns
are with communication and motivation. People are led
rather than managed. They are involved in determining and
realizing strategic objectives.'
14. Hard and Soft HRM
• Hard HRM: A different view of HRM is associated
with the Michigan Business School (Fombrun, Tichy
and Devanna, 1984). There are many similarities
with the Harvard 'map' but the Michigan model has
a harder, less humanistic edge, holding that
employees are resources in the same way as any
other business resource. People have to be
managed in a similar manner to equipment and raw
materials. Thay must be obtained as cheaply as
possible, used sparingly, and developed and
exploited as much as possible.
15. Factors Affecting HR
• Legislation
• The Economic environment
• The global economy
• The structure of the labour market
• The Political environment
• Changes in technology
• Need to constantly retrain staff
16. 1–16
Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your firm in court because of discriminatory
actions
• Have your firm cited by OSHA for unsafe practices
• Have some employees think their salaries are unfair
and inequitable relative to others in the organization
• Allow a lack of training to undermine your
department’s effectiveness
• Commit any unfair labor practices
17. Legislation
• In the EU employment law is highly complex
• In the UK changes made twice a year
• The contract of employment is key to the
employer/employee relationship
18. The Policy Decisions
• The formalities to bargain with Government
legislation, trade unions and workers council
consultations
• The decision to minimise external power and
influence
• Encompass management and employee
group interaction
19. Challenges of HRM
• Individuals differ from
one another
• Customization of
stimulation and
motivation
• Demanding personnel
21. Functions of HRM - 2
Operational
Employment HR Development Compensation Mgt Employee Relations
HR Planning
Recruitment
Selection
Placement
Induction
Performance
Appraisal
Training
Management
Development
Career Planning and
Development
Job Evaluation
Wage and Salary Admn
Incentives
Bonus
Fringe Benefits
22. Emerging role or HRM
• Value of Human Resource
• Competitive advantage
• Human Resource
Accounting – It is
measurement of the cost
and value of people for an
organization
23. Models of HRM
• The Michigan School Model:
– Congruency with organizational strategy
(matching model)
• The Harvard School Model
(Harvard framework)
– Integrated parts towards a strategic vision
and with a central philosophy
25. Elements of human resource cycle
1.Selection: matching available human
resources to jobs
2.Appraisal: performance management
3.Rewards: focus on organizational
performance (most under-utilized and
mishandled tool)
– short-term and long-term
1.Development – developing high quality
employees
27. Characteristics of HRM in Harvard
framework
• 1) line managers accept more responsibility
for ensuring the alignment of competitive
strategy and personnel policy
• 2) personnel has the mission of setting
policies that govern how personnel activities
are developed and implemented in ways that
make them more mutually reinforcing
28. Aims of HRM
1. Organizational effectiveness (HRM makes a significant
impact on firm performance)
2. Human capital management (HC is the prime asset – the
aim is to develop the inherent capacities of people)
3. Knowledge management (support the development of
firm-specific knowledge)
4. Reward management (enhance motivation, job
engagement)
5. Employee relations (harmonious relationship between
partners)
6. Meeting diverse needs (stakeholders, workforce)
7. Bridging the gap between rhetoric and reality (HRM is
to bridge the gap – and to ensure that aspirations are
translated to effective action
29. HRM concepts
People Management
The policies and practice which govern
how people are managed and
developed in organizations
Human Capital
Management
An approach to obtaining, analyzing
and reporting on data which informs
the direction of value adding people
management strategic investment and
operational decisions at corporate
level and at the level of front line
management
Human Resources
Management
The strategic and coherent approach
to the management the most of
organization’s most valued assets –
the people working there who
individually and collectively contribute
to the achievements of its objectives
Personnel Management
Personnel mmanagement is
concerned with obtaining, organizing
and motivating human resources
required by enterprise
30. HRM and Personnel Management
differences
HRM:
• places more emphasis on strategic fit and
integration,
• is based on a management and business
oriented philosophy,
• places more emphasis on mutuality,
• is more holistic,
• specialists are more like business partners than
administrators,
• treats people as assets and not only costs.
31. Hard and Soft HRM
Hard (instrumental) HRM approach:
• employees are viewed as a passive factor of production, an
expense
• employees can be easily replaced and seen as disposable.
• Strategic, quantitative aspects of managing HRM as an economic
factor
Soft (humanistic) HRM approach:
• stresses active employee participation
• gains employee commitment, adaptability and contribution of their
competences to achievement of organizational goals
• employees are valued as assets
• emphasizing communication, motivation and leadership
32. Challenges to HR Professionals
• Worker productivity
• Quality improvement
• The changing attitudes of workforce
• The impact of the government
• Quality of work-life
• Technology and Training
35. Mechanistic Vs organic
organization
Rigid structure
Employees are tied
by rules &
regulations
High degree of
centralization
Suitable for
operating in static
environment
Decision-making is
done by superiors
Ex:Public sector in
the pre-reforms era
Flexible structure
Employees are not
tied by rules &
regulations
Decentralized style
of management
Suitable for
operating in dynamic
environment
Decision-making is
done by junior level
employees also
Ex: Marico`s Saffola
37. Tall Vs Flat structure
CMD
ED ED ED
GM GM GM
CM
CM
Manager
Manager
Officer
Officer
Executive
Executive
TALL
STRUCTURE
COO
PM PM PM PM
Team
Lead
Team
Lead
Team
Lead
Team
Member
Team
Member
Team
Member
Team
Member
FLAT
STRUCTURE
38. RESPONSIBILITY, AUTHORITY &
ACCOUNTABILITY
Responsibility:
It is the obligation of a manager to carry out the
duties assigned to him.
Authority:
It refers to the right to give orders and
the power to exact obedience from others in
the process of discharging responsibility.
Accountability:
The employee's answerability on using
the authority in discharging the responsibility
is termed accountability.
39. LINE AND STAFF
FUNCTIONS
Departments or
employees of a
firm that perform
core activities
Contributes directly
to the business of
the firm
Ex: Manufacturing
and Marketing
departments
Departments or
employees of a
firm that perform a
support function
Contributes
indirectly to the
business of the
firm
Ex: HR and Finance
departments
40. Line & Staff Relationship
TradiTional concepTTradiTional concepT
Service orienTed firmService orienTed firm
Which are line and STaff funcTionSWhich are line and STaff funcTionS
BoTh needS To SupporT each oTherBoTh needS To SupporT each oTher
41. Line staff conflict
Different perceptionDifferent perception
HR professional to bring changeHR professional to bring change
Understand market & organization
Be empathetic
Build trust and transparency
Win – win approach
42. The Role of Human Resources
Department
As a specialistAs a specialist
As a facilitatorAs a facilitator
As a change agentAs a change agent
As a controllerAs a controller
43. HUMAN RESOURCE
MANAGEMENT AND OTHER
ORGANIZATIONAL FUNCTIONS
Product & HRProduct & HR
Production & HRProduction & HR
Marketing & HRMarketing & HR
Management Techniques & HRManagement Techniques & HR
Organization structure & HROrganization structure & HR
44. summary
Organizational Structure and Human
Resource Management
Formal and Informal Organizations
Tall and Flat Organizational
Structures
Responsibility, Authority and
Accountability
Line and Staff Functions
Human Resource Management and
other Organizational Functions
48. HRP defined
•Process of anticipating
and making provision for
the movement of people
into, within, and out of an
organization
49. Objectives of HRP
• To maintain
• To forecast
• To optimize
• To utilizeRight CostRight Cost
Right SkillsRight Skills
Right numberRight number
Right TimeRight Time
50. HRP at different
planning levels
Corporate – level planning
Intermediate – level planning
Operations planning
Planning short-term activities
51. Organizational plans
and objectives
Organizational plans
and objectives
Identify future human
resource requirements
Identify future human
resource requirements
Compare with the
current HR inventory
Compare with the
current HR inventory
Determine the redundant
numbers
Determine the redundant
numbers
Determine the numbers,
levels & criticality of vacancies
Determine the numbers,
levels & criticality of vacancies
Analyze the cost & time involved
in managing the demand
Analyze the cost & time involved
in managing the demand
Analyze the cost & time
required for managing surplus
Analyze the cost & time
required for managing surplus
RetrenchRetrench
Choose the resources &
methods of recruitment
Choose the resources &
methods of recruitment
RedeployRedeploy
HUMAN RESOURCE
PLANNING MODEL
HUMAN RESOURCE
PLANNING MODEL
52. Assessing current human
resources and making
inventory
• Job analysis
• HR inventory – HRIS
• Generate a fairly accurate
picture existing situation
53. Forecasting
• Compare future needs with
current availabity
• Analyze companies change
plan
• Forecasting methods used
are Time Series Analysis,
Regression Analysis and
Productivity Ratios
54. Matching the inventory with
future requirements
• If the current inventory
exceeds the future
requirements
• Natural attrition cannot bring
down resource to match
• What to consider then????
•Recruiters search for qualified job applicants.
•Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.
•Job analysts collect and examine information about jobs to prepare job descriptions.
•Compensation managers develop compensation plans and handle the employee benefits program.
•Training specialists plan, organize, and direct training activities.
•Labor relations specialists advise management on all aspects of union–management relations.
Trends shaping HRM are summarized in Figure 1-4.
Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing.
Carefully studying this book will help you avoid mistakes like these.